Why is Salesforce stock down today?

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Salesforce slides 5.73% today

Highlights

Salesforce announced a $50 billion share repurchase initiative, pledging to return 99% of free cash flow and maintain a $0.44 quarterly dividend.
The company is accelerating AI-powered CRM agent deployment and expanding internationally to counter growth slowdowns and investor concerns.
CRM trades under key technical levels with bearish momentum prevailing, expecting a range of $177.87 to $193.31 and high probability of further declines.

Buyback and AI initiatives expand amid persistent bearish sentiment

Salesforce disclosed a $50 billion share buyback program to support its stock, accompanied by management's commitment to return 99% of free cash flow and maintain a quarterly dividend payout of $0.44 per share. The company has also accelerated the rollout of its Agentforce AI agents within its CRM suites to address concerns around its artificial intelligence strategy and core growth deceleration. Additional initiatives include expanding AI-powered solutions, pursuing geographic diversification in regions such as EMEA, and continued capital allocation strategies involving dividends, acquisitions, and share repurchases, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, points out that Salesforce remains under sustained selling pressure, with the price stuck below all major moving averages. He highlights that even strong buyback measures and expanding AI initiatives have failed to lift sentiment or arrest the negative technical momentum. Kharitonov notes continued bearish signals from momentum indicators, with no sign of divergence or early reversal cues. The commitment to capital returns has not convinced the market, as daily action is dominated by sellers and volatility spikes. "Until CRM reclaims at least $189.72, the environment stays defensive and rallies should be treated with caution," Kharitonov concludes.

Viktoras Karapetjanc, expert at Traders Union, believes the long-term bullish structure is supported by Salesforce’s robust capital allocation and proactive AI expansion. He emphasizes strong management commitment to returning 99% of free cash flow and maintaining dividends, which signals confidence in the company’s prospects. Karapetjanc sees the $50 billion buyback as a major vote of trust and expects the development of Agentforce AI to unlock new market opportunities. Despite the current pullback, he views these catalysts as setting the stage for another growth cycle. "I see further upside once CRM stabilizes, as these initiatives reposition the company for fresh gains," he says.

Momentum signals deepen declines as volatility overshadows reversal prospects

Momentum readings remain weak, as the MACD generates a strong sell signal and the ADX value indicates a lack of clear trend strength. The RSI sits below 50 and flags bearish momentum, while the Stoch RSI and CCI trend toward neutral or oversold zones on intraday frames. BBP suggests sellers firmly dominate the current session, which is confirmed by today’s sharp drop, with the price down $11.17 (falling 5.73%) and opening with a clear downside gap from the previous close. CRM trades just above the session lows and far from the high, highlighting high intraday volatility and clear downside pressure since the open. The daily and short-term indicators remain directionally aligned, with no divergence that would argue for a near-term reversal.

Earlier, analysts noted that Salesforce’s share price was under sustained downside pressure as bearish momentum and heightened volatility predominated despite ongoing buybacks and AI initiatives. The current technical setup reaffirms this weak outlook, with fresh declines highlighting the importance of monitoring any move below $177.87 as a trigger for deeper losses.

Source of Data: CRM Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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